Gulf & Western Net Up 49% in Quarter
Gulf & Western Inc., said Tuesday that its earnings rose 49% in the fourth quarter of its fiscal year, largely because of a real estate transaction.
The publishing, entertainment and financial services company also reported that its annual income increased by 8% in the year that ended Oct. 31.
Gulf & Western said its net earnings for the quarter ended Oct. 31 jumped to $105.4 million from $70.7 million in the fourth quarter of fiscal 1985.
The earnings in the latest quarter included a $38.7-million extraordinary gain from the sale of a vacant property that was formerly the site of the Madison Square Garden sports and entertainment center.
The property was sold to a group of real estate investors led by Zeckendorf Co. of New York. Gulf & Western owns the new Madison Square Garden.
The company’s revenue for the quarter rose 20% to $1 billion from $843 million in the year-earlier quarter.
For the fiscal year, its profit increased to $267.4 million from $247.8 million in fiscal 1985. Revenue rose 14% to $3.8 billion from $3.3 billion.
The company also reported that it approved a quarterly dividend of 30 cents a share, up from 22.5 cents in the fourth quarter of fiscal 1985, making an annual dividend payout of $1.20 a share, up from 90 cents.
Chairman and Chief Executive Martin S. Davis said the increase is consistent with the company’s desire to pay out dividends equal to around 25% of its earnings.
Gulf & Western said each of its areas of operation contributed record income to the year’s results.
The financial services operations, mainly Associates Corp. of North America, continued to build on key product lines and was the largest contributor to earnings, the company said.
It said the publishing and information services business benefited from an acquisition program that broadened its market coverage, while entertainment operations were led by the Paramount Pictures unit.
Paramount had one of the most successful movie release schedules in its history in 1986, Gulf & Western said.
It cited the year’s most popular film, “Top Gun,” which has so far posted a worldwide gross of more than $270 million, as well as “Crocodile Dundee,” which has become the second biggest hit of the year and the highest grossing movie ever released in the autumn, and other popular films such as “Ferris Bueller’s Day Off.”
